Savers warned that base rate rise ‘may not cause rejuvenation in the market’

2 November 2017

Savings rates have slumped since the Bank of England base rate fell to 0.25%, figures show.

According to Moneyfacts.co.uk, the average easy access savings account on the market paid 0.54% just before the Bank of England base rate was cut from 0.5% to 0.25% in 2016. Now it pays just 0.4%.

As well as the low base rate, schemes such as funding for lending have been blamed in recent years for depressing savings rates further, as banks have been less reliant on needing to attract savers' cash with attractive rates.

But Rachel Springall, a finance expert at Moneyfacts, warned that, even with a base rate rise, savers may not necessarily see much improvement.